Indian energy industry needs $150 bn investment: KPMG

Wednesday, 16 May 2007, 07:00 Hrs
Printer Print Email Email
New Delhi: India's power and upstream energy sectors such as coal, oil, gas and nuclear power need funds to the tune of $120-$150 billion over the next five years, says a study released Wednesday by KPMG, a leading consultancy. "Tariff reform in the energy sector and distribution reform in the power sector are two important steps that need to be successfully carried out," says the study - India Energy Outlook 2007 - that outlines the medium-term strategy for the sector. According to it, India's energy consumption is rather low by world standards and the robust growth rate targeted by the country should entail a four-fold rise in energy requirement. "This is a significant challenge for the country." The study says in 2004-05, the total energy consumption for India was estimated at 572 million tonne oil equivalent (MTOE), and the per capita consumption was placed at 531 kilograms oil equivalent (KTOE). "However, with the targeted gross domestic product (GDP) growth rate of over 8 percent and an estimated energy elasticity of 0.80, the energy requirement of the country is expected to grow at over 6.4 percent per annum." The study says given the fact that India has one of the largest deposits of thorium, nuclear energy had tremendous potential in the country. "But the envisaged growth of nuclear power in India is possible provided robust technologies are developed for both the front-end and the back-end of the fuel cycle." "If the Indo-US nuclear deal goes through, there will be a boost to nuclear energy and private participation in this sector would be expected," the study says, adding that till new technologies come in, the sector will be mainly uranium-based. In the case of hydropower, the study says India is endowed with a potential for 150,000 megawatt but just 17 percent of it is harnessed. To achieve the target of 45,000 megawatt in 10 years, private sector participation will be important. Some of the other highlights of the study are: -India to exhaust extractable coal reserves in next 45 years -Only 10.6 percent of installed electricity capacity in private sector -India has the world's lowest per capita natural gas consumption -Theft, pilferage, non-collection result in losses of over $6 billion annually -Railways can contribute in major way to energy savings -38 new coalfields with reserves of 800 million tonnes need $2 billion investment -Discovery of new gas fields in India point to potential in the area
Source: IANS
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..